Hello Nederland – thank you for your patience as we worked through this edition of our FAQs. Pulling these answers together takes some time, so, again, we are grateful for your patience.
1 · Transaction Basics & Governance
What does the signed term sheet actually commit the Town to do, and what’s left before we close?
The confidential term sheet we signed on July 8, 2025, is like a game plan for the rest of the deal. It isn’t a final contract, but it helps set some basic rules. It also makes sure no one else can make a competing offer and shows that POWDR is willing to support the Town following the close and through a transition period.
Even though we’ve taken a big step, there’s still a lot to do before the deal is done. We need to finish our research, work out a final agreement, get everything ready to sell bonds (which will pay for the acquisition), and find people to buy them. After all of that is complete, we’ll sign the final papers.
Why did the Board choose straight‑up municipal ownership instead of a co‑op, special district, or a private buyer?
Local control was the big driver. Owning the resort outright means Nederland can align programming to Nederland values, pursue grant money private owners can’t touch, and keep every dollar of excess profit working for the community. Having the Town own the mountain keeps things simple, clear, and directly accountable.
Will the public get to vote?
No general Town funds or taxpayer dollars are being used to purchase the mountain. The purchase is being made through the Mountain Recreation Enterprise Fund, which operates like a self-sustaining business. It’s funded by revenue from the ski area - like lift tickets, rentals, and lessons - not by taxes. Under Colorado’s TABOR law, because this fund qualifies as an “enterprise,” it’s allowed to issue revenue bonds without a public vote.
This structure also acts as a firewall: it keeps business operations like the ski area financially separate from the Town’s general fund, which is where your tax dollars go. While it’s possible that grants or other non-tax funding sources might support the effort, no general Town resources will be used.
And while a ballot measure isn’t required, every major step still goes through a public Board of Trustees vote, in open meetings where community members are always welcome to weigh in.
Will Eldora stay on the Ikon Pass?
Yes, the plan is to keep Eldora on the Ikon Pass. We're excited to continue that partnership.
Will my property taxes or utility bills change because of this purchase?
No. The bond repayment comes solely from Eldora revenue, not from local taxes.
Does the deal include land for future terrain or workforce housing?
The deal includes all property currently owned by POWDR within the project scope; this includes the ski mountain and nearby parcels like Nederhaus. It does not include additional land specifically intended for terrain expansion or new workforce housing at Eldora.
That said, the Town has long recognized the need for more quality workforce and affordable housing in Nederland. It’s been a consistent priority, and we’ve worked with partners like Boulder County Housing Authority (BCHA) to identify promising sites, both public and private, for future development. Parcels like Nederhaus present potential opportunities, alongside other Town-owned properties already identified for housing.
What sets Nederland apart is that we have the chance to prioritize housing early - not as an afterthought, like in many mountain towns, but as a key part of our community’s long-term planning.
2 · Finance & Bonds
What’s the total price tag, and how are we paying for it?
At this time, the agreed-on purchase price in the non-binding term sheet is not public. The working range is between $100-$200 million.
Can locals or private investors help fund the acquisition?
We've heard from community members, private investors, and philanthropists who are interested in supporting the acquisition, and we really appreciate the enthusiasm. We're currently working with our financial team to explore a way for locals to participate in the bond offering. If we’re able to move forward with a public option, we will share the details with the community.
Philanthropists who are interested in contributing outside of the bond process are encouraged to reach out directly to our Town Manager at townadmin@nederlandco.org to start a conversation.What if the resort has a rotten snow year? Does the Town eat that loss?
No, if the resort doesn’t make enough money in a bad snow year, we have a $10 million reserve fund to help cover our debt payment. Then, in good snow years, we put money back into that fund.
The people who loaned the money, called bondholders, can only be repaid from resort revenues and this reserve fund. They have no claim on the Town’s general budget or taxpayer dollars. If revenues fell short for an extended period, bondholders could require that resort operations prioritize financial stability, for example, directing more of the resort’s earnings toward repayment or adjusting business practices to improve revenue. These measures protect the investment while ensuring the Town’s general finances are preserved.What is the not-to-exceed bond amount mentioned in the Bond Reimbursement the Board of Trustees approved in their 8/5/2025 meeting?
In the Bond Reimbursement resolution, the Town of Nederland has mentioned a "not-to-exceed" amount on the bond related to the acquisition of Eldora in the amount of $180 million. This not-to-exceed amount is required by IRS regulations so the Town can be reimbursed for the expenses incurred during diligence. It is important to clarify that this figure does not reflect the final purchase price for Eldora. As was stated in the board memo posted on 8/5, “This figure defines the legal upper limit for potential future financing but does not represent a spending plan, project cost, or intended borrowing level.” We are committed to providing transparency through this process and the public can expect additional information as the Board of Trustees works through this process.
3 · Employees & HR
Do all 700 Eldora workers really become Town employees?
Yes. Every active employee rolls onto the Town payroll at closing. It is also important to note that some current Town employees will perform work on behalf of Eldora. To account for this, the Town will establish a mechanism to ensure Eldora revenues cover those costs - either by billing the enterprise fund for staff and contractor time, or by allocating a portion of salaries to be paid directly by Eldora.What happens to benefits?
We’re still figuring that out. We couldn’t start working on the details until the agreement was signed. More info about benefits will be coming soon in the next set of FAQs, so stay tuned!
How about the ski patrol union?
Eldora Employees: We want to take this opportunity to express how excited we are to work with you all in the future. One of our highest priorities is to promote a positive and collaborative workplace where all employees feel valued, respected, and supported.
At this stage, our focus is on finalizing the deal and continuing to learn more about Eldora. After closing, we will work diligently to understand operations and to explore the best ways to support our staff and our organizational goals. We are committed to continuing to foster a strong, inclusive culture and ensuring that all employees have access to the best possible benefits and opportunities we can offer.
In the spirit of transparency, we also want to note that under Colorado and federal law, towns like Nederland are not required to recognize or negotiate with unions, which differs from the rules that apply to private sector employers. At this time, we are not in a position to engage in discussions or make decisions relating to this matter. Again, our immediate priority is to work to complete the purchase of Eldora, and then we will focus on easing the transition while taking time to better understand operations, staffing and how best to support the employees of Eldora.
In closing, we are truly looking forward to working with all of you, and to continuing to build a place we are all proud of. We remain committed to being a fair, supportive, and responsible employer for all our employees.
What happens to seasonal J-1 visa staff?
Right now, we don’t plan to change how Eldora hires seasonal J-1 workers. Everything will stay the same for now.
Worst‑case scenario: the enterprise fund can’t cover payroll, does the Town’s General Fund step in?
No. As we mentioned earlier, the resort pays its own way. Its operations and payroll are funded only from the revenues it generates as an enterprise. The Town’s General Fund, which supports services like streets, utilities, and community programs, cannot be used for resort expenses.
We’ve also planned ahead with measures (like the reserve fund discussed above) to help the resort pay debt obligations through slower seasons. This ensures a clear separation between the resort’s finances and the Town’s General Fund.Is there going to be a 40-hour cap for overtime? If there is a 40-hour limit, what is the plan? Pay current employees' overtime to keep various departments who go over that in their rhythm? Or hire a bunch of new people and screw up the way most department's function? As well as screw the existing employees who don’t get paid enough to work that little? Or would you bump existing employees’ pay to keep their paychecks the same as they would be if they weren’t forced to leave after 40?
What we can say right now is that we don’t plan to go out and hire a bunch of new people. That would make things more complicated, and we really want to keep things steady and stable as we take over as the new owner. Our goal is to make this a smooth transition for everyone.But, in full transparency, we’re still working on the answer. We couldn’t bring in most of our legal team until the term sheet was officially signed. Now that it is, we’ve brought in a benefits and employment lawyer to help us figure everything out. So, more information is coming soon—please stay tuned!
One of the biggest reasons the Town of Nederland wanted to buy Eldora is because of the experienced team already working here. We’re all becoming one team, and we want to hear your ideas about how to make things work well for everyone.
4 · Liability & Risk Management
Why not set up a separate LLC to shield liability, and what kind of insurance will we carry?
Towns like ours aren’t allowed to create or own private companies like LLCs. Those are meant for private businesses that want to make money, and towns follow different rules.
What we can do is set up something called an enterprise revenue fund. The enterprise revenue fund operates like a business. Towns are allowed to do that, and that’s why we chose that option.
Now that the term sheet is signed, we’re also looking into all the insurance we’ll need to make sure everything is covered and protected. More details will be shared soon.
How is the Town addressing legal and liability concerns related to operating a ski resort?
The Town is actively evaluating the legal considerations associated with operating a ski resort, including how state laws such as the Colorado Ski Safety Act and the Colorado Governmental Immunity Act may apply. While these laws provide certain legal frameworks and protections, the Town is committed to taking all reasonable steps to ensure compliance with applicable requirements.
In addition to legal review, we are focused on implementing best practices to promote safety for all participants and reduce operational risk. The Town is also working to procure appropriate insurance coverage to further protect against potential liabilities.
What background checks or child‑safety steps will ski school follow?
The Town of Nederland intends to follow industry best practices and continue Eldora’s standard protocols already in place to ensure child-safety steps are in place for ski school.
5· Capital Maintenance & Improvements
Why only $2 million a year for maintenance when POWDR used to spend closer to $10 million?
The $2 million line is for routine upkeep, things like lift maintenance, grooming equipment, and snowcats. The $10 million you heard isn’t maintenance at all; it’s the cost of new projects, like the new lodge, which counts as a capital improvement. Big projects like that sit in a separate capital‑improvement plan and are paid for with future cash flow, grants, or financing, not from the maintenance budget. Think of maintenance as oil changes and tire replacements; the lodge is buying a new car - that’s a separate budget and financing fund. For now, we’re looking at POWDR’s capital maintenance plan as a reference point, and the Town will create its own plan moving forward.
What’s the immediate fix for the aging Corona lift, and when will we replace it outright?
As we continue to go through diligence we will plan for things as we find out more information. Our primary goal at this point is to close the deal and then develop a Master Plan to identify capital improvement projects, resiliency goals, and opportunities for expanded programming. We plan to initiate the development of a Master Plan shortly after acquiring the mountain.
Which grants are we chasing to help pay for upgrades?
We’re already looking at GOCO Outdoor Recreation, CPW State Trails, and a few federal programs.
6 · Permits, Land & Environment
What is the status of the Forest Service Special Use Permit and the process for its transfer?
We are currently working with the US Forest Service on the Special Use Permit related to the operation of the mountain and the use of US Forest Service land. While the permit transfer process is ongoing, we do not anticipate any material changes from the existing permit.
Did we buy water rights, or will we pay extra for snowmaking water?
Eldora already holds water rights for existing and projected snowmaking, and these rights will transfer as a part of the sale.
What happens to LEWSD (Lake Eldora Water and Sewer District) if we get annexed by the town?
We’ve asked the Town’s attorneys to review the Lake Eldora Water and Sanitation District (LEWSD) structure as part of our due diligence. They’re currently evaluating the legal framework of the district, and once that review is complete, we’ll have a better understanding of potential next steps for the organization.
It’s also important to note that the Town of Nederland operates its own Water and Wastewater Utility. We have a great deal of respect for the team currently managing the system at Eldora. From everything we've seen, the Water and Sewer Team at Eldora is highly capable, and we believe there’s meaningful opportunity for collaboration between their team and our municipal utility team going forward.
How will we balance expansion with watershed protection and wildfire mitigation?
At this point it is too premature to talk about expansion activities. Watershed protection and wildfire mitigation remain high priorities for us even without the acquisition of Eldora. More on this subject would come out in the Master Plan we want to initiate after the acquisition.
7 · Infrastructure & Public Services
Who fixes Shelf Road, and how does that tie into Boulder County’s maintenance deal?
Shelf Road is a County Road and remains under the jurisdiction of Boulder County. Ownership of Eldora Mountain does not affect the status or ownership of Shelf Road. The Town recognizes the importance of this access route and will continue to engage with Boulder County to support coordination and communication around its maintenance. If the Eldora property were to be annexed into the Town, the maintenance responsibilities for Shelf Road could change, with the Town assuming responsibility. This issue will be evaluated at the time annexation is considered.
How will we keep Highway 119 from turning into a parking lot on powder days?
Ideas on the table include a real‑time “lot full” sign at the Town roundabout, remote‑lot shuttles, and dynamic message boards.
Will police, fire, and water‑pressure needs of Eldora strain Town services?
No. Any incremental costs, whether related to personnel, infrastructure, or service needs, would be covered by revenues generated from Eldora. Currently, Eldora Mountain is already served by the same police and fire agencies as the Town of Nederland, and there is no indication that annexation would place additional strain on those services.
Regarding water, Eldora draws from a different source than the Town’s drinking water supply, so it would not impact Nederland’s water pressure or availability. In fact, the Town may see potential for improved coordination and increased efficiency across services and infrastructure systems through closer collaboration.
8 · Community Benefits & Local Access
What happens to Eldora profits once the debt is paid down?
After the subordinate bonds are retired and sufficient capital and operational reserves have been established, the Board of Trustees will have the discretion to allocate any excess revenues toward other Town priorities - such as streets, sidewalks, affordable housing, and childcare.
Could the Nederhaus turn into Prop 123‑friendly housing?
Proposition 123 is a program that was approved by voters in Colorado in 2022. Its main purpose is to create a sustainable funding source called the State Affordable Housing Fund. This fund is designed to help communities in Colorado address challenges related to housing affordability. Essentially, it provides money that can be used for projects and initiatives aimed at making housing more affordable for people in the state.To access this funding, local governments need to make a commitment to increase their affordable housing stock by a certain amount over a set period. Nederland committed to permitting 13 affordable housing units and yes, Nederhaus, once owned by the Town of Nederland would qualify for this commitment and then be eligible for funding from the state for renovations.
9 · Year‑Round & Future Opportunities
What is the town's timeline for the proposed summer activities? ASAP? 5-year plan?
Any evaluation of summer operations will take place after the Town acquires the mountain. That evaluation will include a review of the County permit, the US Forest Service Special Use Permit, and the operational costs and logistics associated with summertime activities, as well as coordination and discussions with the Forest Service.
Any plan for summer operations would be incremental and carefully scoped to align with community needs, environmental considerations, and available resources. While ideas like expanding Eldora’s Trail Race Series, concerts or outdoor competitions, such as a Total Archery Challenge, have been discussed, no decisions will be made until we complete a thorough review process.
We're also very interested in hearing your ideas. As people who know the mountain best, your input is incredibly valuable in helping shape a thoughtful and sustainable approach to summer use.Is night skiing on the table?
Any evaluation of night skiing will need to take place after the Town acquires the mountain. That evaluation will need to include a review of the permits and the operational costs and logistics and include coordination and discussions with the Forest Service. We're also interested in hearing from the community. If night skiing is of interest, or if you have concerns, we’d like to hear from you. Your input will help shape the vision moving forward.
Could we ever build a gondola from Barker Reservoir to the resort?
It’s a fun idea, but right now it’s only that: an idea. No feasibility work is planned.
What about Nordic skiing - does it stay?
Absolutely! We know locals particularly love and utilize the Nordic lodge and trails. We will evaluate Nordic operations once the deal is completed.
Could Eldora host film festivals, adaptive sports clinics, or other cultural events?
Sundance anyone? Seriously, there are many cool opportunities for ongoing local events. Keep writing to us with your ideas.
Still have questions?
We are still working on other answers to FAQs and will release our next round as new information becomes available. Drop us a line at BOT@nederlandco.org, visit EngageNederland.org, or speak during public comment at any Board meeting. We’ll keep listening - and we’ll keep updating these FAQs as the story unfolds.